Accounting elements

Identify the 5 accounting elements from the following

• assets, liabilities, income, equity, expenses

• assets, loan, interest, capital, expenses

• assets, loan, income, equity, expenses

• assets, liabilities, insurance, equipment, expenses

Which of the following accounts have Debit nature?

• cash at bank, interest income, trade receivables

• inventory, cash in hand, motor vehicles

• trade payables, insurance, discount allowed

• equipment, loan, capital

Which of the following are non-current assets?

• cash in hand, loan, trade receivables

• motor vehicles, equipment, premises

• inventory, cash at bank, capital

• trade payables, fixtures, bank overdraft

Which of the following are current assets?

• trade payables, loan, cash at bank

• cost of sales, sales returns, cash in hand

• trade receivables, utilities, sales revenue

• cash at bank, inventory, trade receivables

Which of the following are liabilities?

• loan, trade payables, bank overdraft

• loan, trade receivables, cash at bank

• loan, equipment, cash in hand

• loan, capital, trade payables

What is the equation to calculate Capital?

• Beginning capital + Profit + Drawings

• Beginning capital - Profit + Drawings

• Beginning capital - Loss + Drawings

• Beginning capital + Profit - Drawings

What is the difference between sales revenue and sales returns?

• sales revenue is amount earned from providing goods while sales returns is amount earned from providing services

• sales revenue is amount earned from providing goods while sales returns is amount of goods returned from customers

• sales revenue is amount earned from providing goods while sales returns is not sales revenue

• sales revenue is amount earned from providing goods while sales returns is amount of profit

Which of the following accounts are posted to Statement of Financial Performance?

• sales revenue, cost of sales, motor vehicles

• sales revenue, discount received, insurance

• sales revenue, trade receivables, discount allowed

• sales revenue, interest income, cash at bank

Which of the following are posted to the Statement of Financial Position at end of year?

• motor vehicles, salaries, capital

• motor vehicles, discount allowed, inventory

• motor vehicles, cash at bank, trade payables

• motor vehicles, loan, utilities

Identify the correct adjustment when business buys goods on credit.

• Dr Goods Cr Creditor

• Dr Inventory Cr Supplier

• Dr Inventory Cr Trade payables

• Dr Inventory Cr Trade receivables